Wants and Needs

What is the difference between wants and needs?

• Wants are desires or preferences that are not essential for survival or well-being, while needs are necessities that are required for survival or well-being.

• Wants are necessary for survival or well-being, while needs are optional.

• Wants and needs are the same thing.

• Wants are essential for survival or well-being, while needs are desires or preferences.

Which of the following is an example of a want:

• e) Transportation

• d) Clothing

• f) Education

• None of the above

Which of the following is an example of a need:

• Smartwatch

• Education

• Vacation

• Car

True or False: Wants are essential for survival.

• True

• Maybe

• Sometimes

• False

True or False: Needs are things that we desire but can live without.

• True

• Needs are essential for survival

• False

• Needs are only for material possessions

Why is it important to differentiate between wants and needs?

• To understand the difference between luxury and necessity.

• To make better purchasing decisions.

• To avoid overspending and debt.

• To prioritize and move money so that you can afford the needs.

How can understanding wants and needs help in making better financial decisions?

• Understanding wants and needs helps individuals prioritize their spending and moving your resources effectively.

• Understanding wants and needs is irrelevant when it comes to financial decision-making.

• Understanding wants and needs leads to overspending and financial instability.

• Understanding wants and needs has no impact on financial decisions.

What are some strategies to prioritize needs over wants?

• Prioritizing needs based on urgency, avoiding impulse buying, reviewing financial priorities

• Creating a budget, identifying essential expenses, setting financial goals, practicing self-discipline, and avoiding impulsive purchases.

• Setting savings goals, practicing delayed gratification, creating a spending plan

• Tracking expenses, avoiding unnecessary purchases, seeking financial advice